1. Currently holding an $0.802 Conditional Offer.
2. Have received a "Constrained Notice" from your Local Distribution Company (LDC).
   eg. Hydro One

1. You can move your project to another property. However, understanding that most properties in Southwest Ontario are labeled "Constrained" it will be hard to find a property.
2. If you have more than one Constrained Conditional Offer (in your name) you can combine these together on one property (if it has capacity). However, this will change your project into a FIT project and a complete new set of rules will apply (see 2). In our opinion if you are looking for the same return this option is only economic if you can assemble 50 on one property.
3. You can assign your Constrained Conditional Offer to an Eligible Participant or Co-op. This allows individuals that don't have 50 Constrained Conditional Offers in their name the option to come together as a group to make a larger project.

Although the goal of the announcement is get everyone connected, the announcement does not give you the details on how to apply the announcement to your situation. Members have asked if we can move their neighbor's constrained unit or conditional offer to their property because they are connected or the other way around. As soon as you go from one 10kW system per property to two or more the rules of the game change. Your microFIT conditional offer has to become a FIT application and all the additional processes and cost that come with it, such as the requirements of the Renewable Energy Approval (REA) and Connection Impact Assessment (CIA), and the additional cost from Hydro to meet the technical requirement of producing more than 10kW.

The additional cost and administration for the property owner and the constrained neighbor could make the project financially not worth it.

The Co-operative can help! By combining the maximum group (50) onto a single property the advantages begin to have a positive impact on the return.

Unfortunately the OPA's proposition of moving a project to another property is not easily feasible. Capacity cannot be identified based on knowing someone who has a Connection Agreement or knowing pieces of information about the electrical grid at a new location. The vast majority of capacity in Southwestern Ontario has been consumed; and between transmission (thermal and short circuit), distribution and line constraints, the only way to identify areas with capacity is through in-depth consultations with Hydro One or your local LDC's. Because of AGRIS Solar's size, we are working closely with Hydro One to answer the question of "where can we connect".

AGRIS Solar is looking for the best option to save cost and find the quickest route to getting all the conditional offers installed and turned into contracts. It is very clear that the major capacity constraint issues are in Southwest Ontario. AGRIS Solar will be meeting with Hydro One to determine the best place to connect to the grid and the closest properties available to keep cost to a minimal.

The four main criteria for land will be; (1) is there capacity on the grid, (2) how far is it from the feeder and the transmission station, (3) the land must be class 4 (as per The Canadian Land Inventory Classification System), (4) The location must produce the maximum amount of sufficient kilowatt hours as possible.

Although in the above mentioned scenario the Co-operative will incur some additional costs such as leasing, construction and overall maintenance cost will be lower and this will help to offset any additional costs. The net result is the change should have no impact to the Member's returns.

AGRIS Solar is still installing units that have connection approval; we will be meeting with hydro, land owners and our construction crews to evaluate our schedule. The initial estimates show that this process would add one year to the project build timing.

The main reason for the time delay is the REA process. This process is required because we are installing 50 (10Kw systems) on one farm vs. one per farm. The basis of the REA process is an evaluation of the land, environment and the local community by a third party firm. This process can take between 9 to 12 months.

AGRIS Solar is going to hold information sessions throughout Southwest Ontario over the month of September. For Constrained Conditional Offer Holders these meetings will happen after the Board has met and establish the best ways for its membership to benefit from bringing more Members in that are Constrained or helping those individuals that are Constructed and Constrained.

The first reactions have been positive. People understand that this is a long term investment. Some members like the idea that they no longer have to worry about driving their equipment around it and some members have indicated that they prefer not to look at it while sitting out on the porch.